National Insurance Co. Ltd v. Ahrar Ahmed and Ors

JUDGMENT (Oral)

¶1The appellant has challenged the award of the learned Tribunal whereby compensation of Rs.19,67,530/- has been awarded to claimants/respondents No.1(i) to (v).

¶2The accident dated 29th September, 2006 resulted in the death of Ijhar Ahmed. The deceased was survived by his widow, two sons and a daughter who filed the claim petition before the learned Tribunal.

¶3The deceased was aged 54 years at the time of the accident and was in permanent employment with MTNL earning Rs.14,753/- per month. The learned Tribunal added 50% towards future prospects, deducted 1/3rd towards

personal expenses and applied the multiplier of 11 to compute the loss of dependency at Rs.19,47,528/-. Rs.10,000/- has been awarded towards loss of consortium and Rs.10,000/- towards funeral expenses. The total compensation awarded is Rs.19,67,528/-.

¶4The only ground urged by learned counsel for the appellant is that the future prospects should not have been taken into consideration in view of the recent judgment of the Hon'ble Supreme Court in the case of Sarla Verma Vs. Delhi Transport Corporation, 2009 (6) Scale 129 as the deceased was 54 years old.

¶5The claimants are present along with their counsel. The learned counsel for the claimants/respondents do not dispute the ground raised by learned counsel for the appellant. However, the learned counsel for the claimants submit that the deduction towards the personal expenses should be reduced from 1/3rd to 1/4th and the compensation be awarded for loss of love and affection and loss of estate in terms of the judgment of the Hon'ble Supreme Court in the case of Sarla Verma (supra).

¶6Following the recent judgment of the Hon'ble Supreme Court in the case of Sarla Verma (supra), the income of the deceased is taken to be Rs.14,753/-, 1/4th is deducted towards personal expenses of the deceased, multiplier of 11 is applied, Rs.10,000/-is added towards loss of consortium, Rs.10,000/-towards loss of love and affection, Rs.10,000/-

towards loss of estate and Rs.10,000/- towards funeral expenses. The total compensation is computed to be Rs.15,00,547/-.

¶7The appeal is allowed and the award amount is reduced from Rs.19,67,528/- to Rs.15,00,547/- along with interest @7% per annum from the date of filing of the petition till realization.

¶8The appellant has deposited Rs.17,95,287/- with UCO Bank in terms of the order dated 24th September, 2009. The aforesaid amount includes the principal amount of Rs.15,00,547/- and interest thereon up to the date of the deposit.

¶9Claimants/respondents No.1(i) and 1(ii) are present in the Court and they have been examined with respect to their financial status and financial needs.

¶10UCO Bank is directed to release Rs.45,287/- to respondent No.1(i) – Ahrar Ahmed, Rs.50,000/- to respondent No.1(v) - Ishrath Jahan and Rs.1,00,000/- to respondent No.1(ii) – Shahjahan Bano.

¶11The remaining amount of Rs.16,00,000/-be kept in four fixed deposits as per the details hereunder:-

(i) Fixed deposit for Rs.10,00,000/- in the name of Shahjahan Bano for a period of 10 years.

(ii) Fixed deposit for Rs.2,00,000/- in the name of Ahrar Ahmed for a period of 5 years.

(iii) Fixed deposit for Rs.2,00,000/- in the name of

Azar Ahmed for a period of 5 years.

(iv) Fixed deposit for Rs.2,00,000/- in the name of Ishrath Jahan for a period of 5 years.

¶12The monthly interest in respect of three fixed deposits in the name of Shahjahan Bano, Ahrar Ahmed and Azar Ahmed be released to Shahjahan Bano by transferring the same to her Saving Bank Account whereas the interest on fixed deposit in the name of Ishrath Jahan be released to her by transferring the same to her Saving Bank Account.

¶13The interest on the aforesaid fixed deposits shall be paid monthly by automatic credit of interest in the Savings Account of respondent Nos. 1(ii) and 1(v).

¶14Withdrawal from the aforesaid account shall be permitted to respondent Nos. 1(ii) and 1(v) after due verification and the Bank shall issue photo Identity Card to respondent Nos. 1(ii) and 1(v) to facilitate identity.

¶15No cheque book be issued to respondent Nos. 1(ii) and 1(v) without the permission of this Court.

¶16The original Fixed Deposit Receipts shall be retained by the Bank in the safe custody. However, the original Pass Book shall be given to respondent Nos. 1(ii) and 1(v) along with the photocopy of the FDRs.

¶17The original Fixed Deposit Receipts shall be handed over to respondent Nos. 1(ii) and 1(v) at the end of the fixed deposits period.

¶18No loan, advance or withdrawal shall be allowed on the said fixed deposit receipt without the permission of this Court.

¶19Half yearly statement of account be filed by the Bank in this Court.

¶20On the request of the claimants/respondents, the Bank shall transfer the Savings Account to any other branch of UCO Bank according to their convenience.

¶21The claimants/respondents shall furnish all the relevant documents for opening of the Saving Bank Account and Fixed Deposit Account to Mr. M.M. Tandon, Member-Retail Team, UCO Bank Zonal, Parliament Street, New Delhi.

¶22Since the appellant has deposited the entire award amount along with interest, the statutory amount of Rs.25,000/- be refunded back to the appellants through counsel within four weeks.

¶23Copy of the order be given dasti to counsel for both the parties under the signatures of the Court Master.

¶24Copy of this order be also sent to Mr. M.M. Tandon, Member-Retail Team, UCO Bank Zonal, Parliament Street, New Delhi (Mobile No. 09310356400) through the UCO Bank, High Court Branch under the signature of Court Master.

J.R. MIDHA, J

NOVEMBER 25, 2009

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*IN THE HIGH COURT OF DELHI AT NEW DELHI + MAC.APP.No.473/2009 Date of Decision: 25th November, 2009 % NATIONAL INSURANCE CO. LTD ..... Appellant Through : Ms. Rajdipa Behura and Mr. C.S. Chauhan, Advs. versus AHRAR AHMED AND ORS ..... Respondents Through : Mr. N.K. Jha, Adv. for R-1. CORAM :- THE HON'BLE MR. JUSTICE J.R. MIDHA 1. Whether Reporters of Local papers may be allowed to see the Judgment? 2. To be referred to the Reporter or not? 3. Whether the judgment should be reported in the Digest?